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Capital Leases
9 Months Ended
Sep. 30, 2012
Capital Leases [Abstract]  
CAPITAL LEASES

NOTE H — CAPITAL LEASES

On September 9, 2011, we entered into a master lease agreement for an equipment lease line of credit with Garic, Inc. The facility had a 12 month draw down period and each schedule has a thirty six month term. The lease had a fair market value option at the end of the term at a price not to exceed fifteen percent of the equipment cost or the right to return the equipment. The facility expired and we had borrowed $658,000 over the life of the line at an interest rate of 16.12%.

 

In June 2012, we entered into a five year, $1 buyout equipment lease of approximately $495,000 for the purchase of laboratory equipment with Wells Fargo Lease Equipment Financing. The lease has an interest rate of approximately 6%.

During the nine months ended September 30, 2012, we entered into several vendor lease arrangements for approximately $1,555,000, primarily for the acquisition of lab equipment and to a lesser extent computer hardware. These capital leases are for 36 to 60 month terms, have either $1 purchase options or were fair market value at the end of the term, and had approximate interest rates between 8% and 16%.